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Comments

[Edith Karoline Jasser ABR YourRealtor4LIfe!]

One Question to CAR and its members and leadership:

When wanting to work with an attorney everybody is required to pay a retainer and then will be billed for extra time and extra work.....The doctor will makesure to have your insurance to be billed and the co-pay from the patient up front....
And on and on....
I have been asking myself for a very long time, why the real estate industry has not come up with at least a reasonable industry wide retainer agreement!

And this is here for discussion and for possibly finding a workable solution:
I think our work would be gaining higher appreciation by the public if a retainer
is the way ALL Realtors work.

There is really no risk involved for the consumer - as if they are loyal to their
Buyers Agent and buy with that agent the retainer will be refunded at the closing and same would be applicable for the Seller!

They pay an upfront retainer to their Buyers agent for researching, showing
and sharing their expertise with them if then they decide not to buy they lose the retainer, if they decide to work with another agent they lose the retainer
(at least the agent is paid for some of the time, effort and expenses incurred)

if the client is a seller, the same should apply, may be the retainer should be
in relationship to the value of their property and the same if they think they need to work with 5 different agents, they will think twice if every agent wants a retainer that is only refundable if they sell with that agent....

I am just wondering why throughout all these years the associations of Realtors and not just CAR have not come up with a feasible solution like that.

I am really just looking for a solution where there is an actual commitment on the part of the consumer to their Realtor...

Just a thought and I cannot wait to read everybody's comments and thoughts.
Edith YourChicagoConnection

[Mabel Guzman, 2009 C.A.R. Treasurer]

It's an interesting concept that would have to be examined at the office level. As a REALTOR compensation is paid to the license holder not the licensee. This may need to have the same approach.

I will answer your question with a few questions.

Will the client be registered with the company, like a listing?

What happens to the retainer if customer/ client does not purchase?
Within what time frame?

Should all those who participate require a designation i.e. ABR, CRS?

I am open to moving the industry forward, upward whichever way would make it efficient and that will lead to increased professionalism.

[Edith Karoline Jasser ABR YourRealtor4LIfe!]

I will answer your questions Mabel with my thoughts and ideas about it....
First I want to clarify I am talking about both, but more importantly about Sellers...as they already sign a listing agreement, it would be quite easy to attach the retainer issue into the contract....
They can cancel the listing agreement and not owe a commission unless they get into a deal with anyone who the property was shown to by the listing agent/office
which is already in the agreement.
The retainer I am thinking about and hop
ing for, is an up front retainer a fixed amount that will only be returned to the Seller if and when the seller closes
with the listing agent/listing office he contracts with...
I think and strongly feel that Sellers need to get some sense of that WE AS REALTORS DO NOT WORK FOR FREE and that they can just decide at any given time to switch from one agent to another without any consequence to them. If they would lose every time they cancel an agreement, they will think twice (5 different Agents at 2000 $ each that would mean 10,000 to them believe me they will not do it!

I also think that the retainer should be a percentage of the app. list price
more for more expensive homes!

As far as buyers goes - We should all get them to sign the Buyers Agreement
and in it should be a retainer, compensation fee that the buyers will have to
deposit with the office.... if they do not buy with the agent and cancel their agreement, either because they want to look with someone else or they cannot find what they are looking for reason does not matter, that retainer represents compensation for time and effort spent and expertise shared....

I THOUGH THINK THAT THIS HAS TO BE ADOPTED STATEWIDE - EACH AND EVERY AGENT HAS TO, LIKE THEY HAVE TO HAVE A LISTING AGREEMENT, AS THEY HAVE TO HAVE THE DISCLOSURES AND FOLLOW ALL KINDS OF OTHER RULES.
BECAUSE IF NOT EVERY AGENT AND EVERY OFFICE APPLIES THE NEW RULE, the public will just look for the ones who do not charge. On the other hand the ones that do may just look more competent and more professional...

All in all it will be major change and the public will have to be introduced to it
through the various boards of Realtors, but to me it makes a lot of sense....

I think that it is only fair that a listing agent/office putting out ads, flyers, open house time, showings and God knows what else we do and then the seller decides oh well I will try it by owner bye bye, nice knowing you. NO they should feel that they are paying a small amount for the efforts and expertise
and that the office and agent deserve compensation for that even if the house does not sell.....
And if it does sell, then the retainer will go back to them as they then pay the agreed upon commission...

I think if the property does not sell, or the buyer does not buy that retainer should not go back, compensation for services rendered...

It will probably once introduced and used by everyone.... Have the sellers and buyers be more respectful of our profession, appreciate us more, not zigzag from one agent to another for selling or buying......

I think with the right introduction and the right wording in the two already existing contracts the listing agreement and the buyers agreement....
It should be possible to introduce BUT AS I SAID SUCCESSFUL ONLY IF
ALL ADHERE TO IT.....

I am not sure about the requirement of a ABR or GRI,because that will leave
agents out and I think it will only work if all of us comply...... it's a bright thought right....

But there are many of us out there, may be someone has an even better idea, but I am thinking that we need to make ourselves look PROFESSIONAL
WITH IMPORTANT KNOWLEDGE AND SKILLS JUST LIKE AN ATTORNEY OR DOCTOR and therefore deserve a retainer fee that will only be waived if and
when the agreement signed leads to a closing!

I am open for your thoughts!
Edith